It explains a lot about our current situation (economically, climate etc).This thread is definitely showing the ages of posters mind you
Discussion about mis-selling of endowment mortgages in the 80s and 90s
- Thread starter Rroff
- Start date
Not really, the younger generation just slam everything on tic and try to pretend it's ok.
Soldato
Yeah I agree its much easier to find out information now. At 43, my period of activity coincided with the start of the internet where much more information could be found on things.
But even so, something like PPI, I got offered it on my first mortgage, and I didn't need to do much research to be able to say that I didn't need/want it. Even now, I have a mindset that I will never buy anything without having researched it first. The missus and I were in a pet shop just after we got our dog, and the missus nearly got talked into buying a monthly worming and flea treatment subscription. I was immediately skeptical on the need for that so we didn't do it. Turns out, yeah its way overkill.
I don't think it does really, there are typically no personal consequences for these people, who can be long since retired. Its the organisation, and in the case of the NHS, us taxpayers, who are paying for these things.
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Soldato
Firstly you were tied into this on a promise which may have only gone sour 10 years in. You were relying on your annual statements and many mortgages were only calculated annually as well. The endowment was tied into the mortgage until later years. Your choice was either to cash it in at a loss before term and chose another method, ie go repayment. Or stick it out crossing fingers and toes.
Soldato
I assume you're also a fully qualified & experienced mechanic, dentist, plumber, electrician, doctor, builder, etc. so you're able to easily spot when one of them is trying to mis-sell you something or giving poor advice for their financial benefit?
Meanwhile, in the real world, it's impossible to be an expert in everything, which is why you should be able to trust a supposed independent expert to give you appropriate advice. There's a difference between not taking personal responsibility, and making a poor decision because it's based on basically being lied to by effectively your only source of information on the subject.
Don't forget, a lot of this happened in the 80s/early 90s when the internet didn't exist in the form we know it today, so it was a lot more difficult to research things.
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Showing your age with that comment as well.
Caporegime
It puts the organisation responsible, it puts the Hospital responsible, it puts the doctor....if he does it repeated with these bodged procedures responsible and loses his medical licence.
It brings awareness to the situation, it makes people to put in rules and procedures to prevent it happening in the future.
It sure does more than "Yeah, just let it go! You only lost your ability to walk from this bodge procedure."
Agreed, we were the same. Banks, advisers were all saying go for the endowment policy and interest only mortgage. There was never any suggestion that things may not go as well as the projections suggested. Ours didn't perform as well as "forecast" and we transferred onto a capital/interest product eventually.
I think it's also important to remember that information wasn't as readily available back then as it is now. We didn't have google and access to real time data on what the markets were doing. We might have been lucky enough to get a page in the newspaper once a week and a visit from the mortgage adviser once a year.
edit: been a few posts since I read that one
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Lol I'm about in the middle at 38
But yeah, people my age and younger are known to nuke credit, knowing how crap it all is. I just find it funny that our generation are mocking the older ones for being mis-sold endowments when half of us are terrible with credit that we know exactly what's what.
Soldato
This thread is definitely showing the ages of posters mind you
I suspect very few under 50 experienced this directly. Many regulations were put onto the industry as a result and the internet has enabled a far better flow of information so that it's easier to be well informed of choices instead of having to rely on an "expert" for access to the information. Who remembers when shopping for competitive car insurance meant either sitting on the phone for hours calling everyone or popping into your local branch of Swinton's.
Seems like a prudent approach to how you finance the roof above your head.
I think you are projecting -- I only know of one lad in my friend group whose got into trouble with credit.
Soldato
To be fair, its the same now with interest rates. Took a 5 year fix (thankfully) but with full knowledge that house prices are inflated and that the economy was likely to be screwed. Quite how screwed has become more obvious since but still. Thing is, what can you do?
Soldato
That was the only flippant part of my post. One that you chose to selectively quote.
You've been posting in GD long enough to know that's clearly not true
Soldato
Not really. There's a reason why companies like Klarna are doing so well. Just because your close group of friends are OK financially (and you seem to be doing nicely), it doesn't mean the masses aren't.
You're being terribly naive if you think that tbh.
Soldato
It's also extremely naive to assume everyone in his friend group would actually tell the rest of them if they were in trouble...
Edit: that's ignoring the fact not being "in trouble" with credit doesn't necessarily mean you aren't using more than you should
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Right, but in all fairness I didn't suggest the 50% of youth are crap at credit. Being "crap at credit" is a loose statement as well, given how few understand credit is GOOD for making more money, if managed well. And the latter "if managed well" isn't the cop out a lot of people seem to want it to be.
Financial education is very poor in this country; I hadn't realised the extent of how poor it has been historically either. This thread has been very illuminating tbh.
People my age are a lot more open with finances than previous generations. We don't gauge wealth on whether there is a brand new car on the drive paid for on tick using an endowment instrument, for example.
Soldato
Unless people your age are 12, I call BS on the last part of that statement.
Edit: sorry, let me rephrase that:
Plausible generations: 0
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